Composite policy is a group policy in which Composite Rating is used for premium calculation. Instead of Individual User a specific group of people will buy composite policy to cover multiple risks with shared premiums. So that premium will be less for every individual in the group.
Composite Rating: In insurance, a composite rating is a method where an insurer groups together various insured entities or individuals and determines a single premium rate for the entire group. The premium is calculated based on a weighted average of the risk characteristics of the members in the group. This approach allows the insurer to simplify the underwriting and rating process, especially when dealing with large groups with diverse risk profiles.
In composite policy, composite groups will be created based on premises only, prodops only or depending on both. Again those will be assigned to the exposure to generate group premium.
In Composite policy offset costs will be generated. We can include or exclude additional coverages from Composite premium.
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